Prohibits investment by State of pension and annuity
funds in companies manufacturing, importing, and selling assault firearms for
civilian use.

CURRENT VERSION OF TEXT

As introduced.

An Actprohibiting the investment by the State of
pension and annuity funds in companies manufacturing, importing, and selling
assault firearms for civilian use, and supplementing P.L.1950, c.270 (C.52:18A-79 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As used in this
section:

“Assault firearm” means
“assault firearm” as the term is defined in subsection w. of N.J.S.2C:39-1.

"Equity tie" means
manufacturing plants, employees or advisors, facilities or an investment of any
kind, including an ownership stake in one or more subsidiaries or joint ventures
with one or more companies.

b. Notwithstanding any
provision of law to the contrary, no assets of any pension or annuity fund
under the jurisdiction of the Division of Investment in the Department of the
Treasury, or its successor, shall be invested in any company that has an equity
tie to manufacturers, importers or sellers of assault firearms for civilian
use. The prohibition shall not apply to companies that manufacture, import or
sell assault firearms for the exclusive use by nations’ official military
organizations and law enforcement agencies.

c. The State Investment
Council and the Director of the Division of Investment shall take appropriate
action to divest any investment held in violation of subsection b. of this
section. This section shall not be construed to require the premature or
otherwise imprudent divestment of an investment, but such divestment shall be
completed not later than three years following the effective date of P.L. ,
c. (C. ) (pending before the Legislature as this bill).

d. Within 60 days after the
effective date of P.L. , c. (C. ) (pending before the Legislature as
this bill) the Director of the Division of Investment shall file with the Legislature,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a report of all
investments held as of the effective date that are in violation of subsection b.
of this section. Every year thereafter, the director shall report on all
investments divested in compliance with subsection c. of this section.

Each report after the initial
report shall provide a description of the progress that the division has made
since the previous report and since the enactment of P.L. , c. (C. )
(pending before the Legislature as this bill) in implementing subsection b. of
this section.

e. State Investment
Council members, jointly and individually, and State officers and employees
involved therewith, shall be indemnified and held harmless by the State of New
Jersey from all claims, demands, suits, actions, damages, judgments, costs,
charges and expenses, including court costs and attorney’s fees, and against
all liability, losses and damages that these State Investment Council members,
and State officers and employees, may sustain by reason of any decision to
restrict, reduce or eliminate investments pursuant to this act.

2. This
act shall take effect immediately.

STATEMENT

This bill prohibits the State
of New Jersey from investing any assets of any pension or annuity fund under
the management of the Division of Investment in the Department of the Treasury
in companies that manufacture, import or sell assault firearms for civilian
use. The bill exempts from the ban investments in companies that manufacture,
import or sell assault firearms for the exclusive use by nations’ official
military organizations and law enforcement agencies. As for existing
investments that are held in violation of the prohibition, the Division of
Investment has up to three years to divest from the prohibited companies. The
bill’s definition of assault firearms is identical to the definition of the
term under the existing New Jersey ban on the sale of assault firearms under
N.J.S.A.2C:39-1.